Comparing Orion Energy Systems (NASDAQ:OESX) & Polar Power (NASDAQ:POLA)

Orion Energy Systems (NASDAQ:OESX) and Polar Power (NASDAQ:POLA) are both small-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Earnings and Valuation

This table compares Orion Energy Systems and Polar Power”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion Energy Systems	$86.31 million	1.35	-$3.16 million	($0.05)	-567.80
Polar Power	$6.30 million	0.85	-$9.13 million	($3.52)	-0.36

Orion Energy Systems has higher revenue and earnings than Polar Power. Orion Energy Systems is trading at a lower price-to-earnings ratio than Polar Power, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Orion Energy Systems and Polar Power’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orion Energy Systems	0.04%	11.66%	3.40%
Polar Power	-207.92%	-610.87%	-86.48%

Volatility & Risk

Orion Energy Systems has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Polar Power has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Orion Energy Systems and Polar Power, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion Energy Systems	1	1	1	0	2.00
Polar Power	1	0	0	0	1.00

Orion Energy Systems currently has a consensus target price of $30.00, indicating a potential upside of 5.67%. Given Orion Energy Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Orion Energy Systems is more favorable than Polar Power.

Insider & Institutional Ownership

52.6% of Orion Energy Systems shares are held by institutional investors. Comparatively, 26.1% of Polar Power shares are held by institutional investors. 5.3% of Orion Energy Systems shares are held by company insiders. Comparatively, 30.8% of Polar Power shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Orion Energy Systems beats Polar Power on 11 of the 14 factors compared between the two stocks.

About Orion Energy Systems

Orion Energy Systems, Inc., together with its subsidiaries, researches, designs, develops, manufactures, markets, sells, installs, and implements energy management systems for commercial office and retail, area lighting, industrial applications, and government in North America and Germany. It operates in three segments: Lighting, Maintenance, and Electric Vehicle (EV). The company offers light emitting diode (LED) lighting products; construction and engineering services for commercial lighting and energy management system; lighting and electrical system maintenance, repair, and replacement services; and EV charging station and installation solutions. It also provides LED high bay fixtures and LED troffer retrofits; smart lighting controls, a wireless Internet of Things enabled control solution that provides lighting control options and data intelligence capabilities for building managers; and various LED fixtures for lighting and energy management needs comprising fixtures for agribusinesses, parking lots, roadways, retail, mezzanine, outdoor applications, and private label resale. In addition, the company offers lighting-related energy management services, such as site assessment, site field verification, utility incentive and government subsidy management, engineering design, project management, facility design commissioning, and recycling. It serves customers directly and through independent sales agencies and distributors, national account end-users, federal and state government facilities, regional account end-users, electrical distributors, electrical contractors, and energy service companies. Orion Energy Systems, Inc. was incorporated in 1996 and is headquartered in Manitowoc, Wisconsin.

About Polar Power

Polar Power, Inc. designs, manufactures, and sells direct current (DC) power generators, renewable energy, and cooling systems in the United States and internationally. The company offers DC base power systems, DC hybrid power systems, DC solar hybrid power systems, and mobile power systems. Its DC power systems are available in diesel, natural gas, LPG/propane, and renewable fuel formats. It serves customers in the telecommunications, military, commercial, industrial, and marine markets. In addition, the company sells its products through a direct sales force, and independent service providers and dealers. The company was formerly known as Polar Products, Inc. and changed its name to Polar Power, Inc. in October 1991. Polar Power, Inc. was incorporated in 1979 and is based in Gardena, California.